Latest / Leaders in Lending / Fraud, Policy Shifts, and EV Financing: What’s Next for Auto Lenders?

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Fraud, Policy Shifts, and EV Financing: What’s Next for Auto Lenders? · Leaders in Lending

• 0:04
  Speaker 1: Hey everyone, Matt Snow again here from Upstart live from
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  Speaker 1: CBA in Orlando, Florida, with Fabian Terry and Mike gilbert
• 0:12
  Speaker 1: there from the Auto Committee.
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  Speaker 2: Thanks for joining me, guys, Thank you for having us.
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  Speaker 1: Yes, absolutely, Why don't we get started by maybe some
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  Speaker 1: personal introductions. Where you're working today?
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  Speaker 3: Absolutely so, Fabian Sierry So. I work for Bank of America.
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  Speaker 3: I lead the Auto Consumer and Small Business organization. I've
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  Speaker 3: been with the bank for seventeen years now and various
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  Speaker 3: capacities and specifically for the CBA. I'm the chair of
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  Speaker 3: the Auto Committee, and I'm peaced to be here.
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  Speaker 1: Great.
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  Speaker 2: Thank you.
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  Speaker 1: So.
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  Speaker 4: Mike Gilberton, co chair with Fabian and the Auto Committee,
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  Speaker 4: currently an associated bank, been there since startup for their
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  Speaker 4: indirect Auto September twenty one. Prior to that, twenty eight
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  Speaker 4: years at Key Bank, and then an illustrious start in
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  Speaker 4: this business at GMAC if you can call that name. Yeah,
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  Speaker 4: So happy to be here.
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  Speaker 1: Great, Well, thanks guys. I know you know sometimes we've
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  Speaker 1: talked with past gasts about getting into banking. Was that
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  Speaker 1: a childhood dream or like, how did you get into
• 1:08
  Speaker 1: the banking world?
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  Speaker 3: Actually, my my background is actually in the auto space,
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  Speaker 3: so as not even working for fold back in Europe, gotcha,
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  Speaker 3: spent ten years with them various capacities, and then I
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  Speaker 3: droned the banking industry when I moved to the US.
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  Speaker 3: That was over seventeen years ago, and then more it was,
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  Speaker 3: say like.
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  Speaker 2: Four years ago.
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  Speaker 3: I've been I've been eating but the auto division at
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  Speaker 3: the bank. So it's kind of like full circle of
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  Speaker 3: all my head.
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  Speaker 2: Exactly nice. How about you, Mike, Yes.
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  Speaker 4: Right out of college, hired a GMAC So it's all
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  Speaker 4: I've ever known, all I've ever done, and all I've
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  Speaker 4: ever loved.
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  Speaker 1: So yeah, great, and that's probably what's brought you both
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  Speaker 1: to the committee. So maybe first, you know, describe a
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  Speaker 1: little bit about the committee's role, how you ended up there,
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  Speaker 1: and it's important importance within the CBA.
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  Speaker 2: Do you want to go?
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  Speaker 4: So yeah, I mean it's if you're interested and you
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  Speaker 4: want to engage, which obviously the two of us here
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  Speaker 4: we were definitely interested. It's a passion something we love.
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  Speaker 4: And then we're engaged you would like to participate, like
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  Speaker 4: a dig into things like to just be a member
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  Speaker 4: of the committee. And then obviously the more vocal we are,
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  Speaker 4: the more you want to kind of not take charge,
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  Speaker 4: but just take some ownership. You kind of elevate to
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  Speaker 4: these two positions where you've you've got extra responsibilities and duties.
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  Speaker 4: But it's fun. It's not work right, so's it's a joy.
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  Speaker 4: It's a pleasure to work with and partner with twenty
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  Speaker 4: five other auto lenders. We're competitors, but we're respectful, we're friends.
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  Speaker 4: So it's a great group that we're part of.
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  Speaker 2: It's a great group of PIO.
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  Speaker 3: What Mike was saying, I think we just had the
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  Speaker 3: opportunity to be working. We've community members that are very
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  Speaker 3: passionate and knowledgeable. We all want the same thing. We
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  Speaker 3: want to serve our customers. We know and understand THEOTWO industry,
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  Speaker 3: and so we have the portunity on a monthly business
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  Speaker 3: to be meeting as a committee cover everything from regulatory
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  Speaker 3: to you know, new industry trends. Obviously, with the involvement
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  Speaker 3: of the the CBA, we're able to get connectivity through
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  Speaker 3: having like different you know, players vendors coming and talking
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  Speaker 3: to us about the challenges, what they're seeing, and more importantly,
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  Speaker 3: how can we keep moving the industry forward. And so
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  Speaker 3: as as the share and the co chair Mike and
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  Speaker 3: I had the opportunity to be you know, interacting with
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  Speaker 3: all the bankers and regardless of the size of the banks,
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  Speaker 3: we we kind of like we have a common agenda
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  Speaker 3: and we're trying to do the.
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  Speaker 2: Best for our customers. Yeah.
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  Speaker 1: Great, it must be something you enjoy if you're giving
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  Speaker 1: up four hours of a weekend to come and chat
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  Speaker 1: about these things and meetings together and multiple sessions throughout.
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  Speaker 1: What are some of the common maybe concerns of members
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  Speaker 1: today are addressing.
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  Speaker 3: Yeah, regulatory has been front end center for the last
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  Speaker 3: couple of years, so we spent a lot of time
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  Speaker 3: talking about you know, regulatory agencies and and and what
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  Speaker 3: it means for the industry from the dealer side as
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  Speaker 3: well as from the consumer impact on the banks. We
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  Speaker 3: talk about just some of the you know, gap refunds,
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  Speaker 3: insurance refund to a lot of the topics that the
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  Speaker 3: CFPB had on their agenda. Those are the type of
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  Speaker 3: topics that we discuss as as you know with the
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  Speaker 3: with the rest of the of the bank partners the
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  Speaker 3: rest will be more centric around fraud. I would say
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  Speaker 3: it has been kind of like maybe a topic that
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  Speaker 3: has been growing. Unfortunately, spent a lot of time talking
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  Speaker 3: about what it means, what we're saying, and how we
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  Speaker 3: can combat fraud and so again leveraging partners and solution.
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  Speaker 2: Across the industry to try to advise that issue. And
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  Speaker 2: the last one, Mike, I think it's just more like
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  Speaker 2: industry trains what we're saying from like more the topic
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  Speaker 2: that drives the market forward.
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  Speaker 3: So electric vehicle was was one topic that we spend
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  Speaker 3: a lot of time covering in our committee.
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  Speaker 2: Anything else that you can think.
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  Speaker 4: About, yeah, I mean it's all it's front and center,
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  Speaker 4: it's top of mine in real time. So Fabian and
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  Speaker 4: I do a good job. I'll give us both credit.
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  Speaker 4: As soon as something comes out. It's the State of
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  Speaker 4: New York Attorney General came out with, you know, trying
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  Speaker 4: to form a CFPB. That was out to the members
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  Speaker 4: within thirty minutes when that was released. So that's just
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  Speaker 4: one example. As soon as something hits, we put it
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  Speaker 4: out for everyone, and then when we get together either
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  Speaker 4: in person or once a month on our team's call,
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  Speaker 4: we revisit it, We talk about it, try to drill
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  Speaker 4: into more than Okay, anybody can read the article, right,
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  Speaker 4: so what does it really? What's it mean? What's it mean?
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  Speaker 4: And how do we take what it means and put
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  Speaker 4: it in practice? How do we act on it? Not
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  Speaker 4: act on it? I mean decho a little bit about
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  Speaker 4: what Faban mentioned right, regulatory CFPB. You know, we all
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  Speaker 4: know we've dealt with supervisory highlights. It wasn't the rule
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  Speaker 4: of how you should have followed things some people believe.
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  Speaker 4: But nonetheless, you know, where does the CFPB sit now?
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  Speaker 4: What does it mean for us? How are we digesting that?
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  Speaker 4: What will happen? You know, you try to crystal ball it.
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  Speaker 4: If the CFPB isn't in its current state, are the
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  Speaker 4: states going to come out? What would those look like?
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  Speaker 4: If you have a national lender, right, and the national
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  Speaker 4: lender now has to deal with twenty versions of a CFPB,
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  Speaker 4: what's that look like? Is it easier just to deal
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  Speaker 4: with one versus twenty? So these are things we talked about,
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  Speaker 4: Like I said yesterday, Fraudy mentioned, but it's what we
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  Speaker 4: kind of deep dive into. We don't share trade secrets,
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  Speaker 4: but yeah, best practices and it's good to just hear
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  Speaker 4: real time what other folks see around all those topics,
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  Speaker 4: and there's a lot of them.
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  Speaker 1: Yeah, I was going to say that's probably now more
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  Speaker 1: than ever an important role for the committee with the
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  Speaker 1: pace of change, the uncertainty the state level you mentioned
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  Speaker 1: is another dimension. Just trying to share the awareness, let
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  Speaker 1: alone best practices like just get any information out there
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  Speaker 1: would be important. Absolutely, how do you stay on top
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  Speaker 1: of those things or get the information?
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  Speaker 3: Yeah, I mean think about so again I will on
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  Speaker 3: the regulatory side, just we obviously stay very close to
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  Speaker 3: to what's happening, not only at the CBA, but we.
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  Speaker 2: Also leverage other trade organization after.
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  Speaker 3: NDA to kind of like again just to get get
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  Speaker 3: get the information. In the end of our members, it's
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  Speaker 3: it's that it's about communication and transparency. So regulatory is
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  Speaker 3: definitely one one one topic. But just to answer your question,
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  Speaker 3: also think about just also the all the digital transformation
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  Speaker 3: that is happening in the other space. But that is
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  Speaker 3: also something that that week over I talk about just
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  Speaker 3: the importance of bringing a third party coming to.
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  Speaker 2: Talk to us.
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  Speaker 3: Was our experts in the field are trying to kind
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  Speaker 3: of have those digital tools that help solving.
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  Speaker 2: Some of those issues and gaps. Some Yesterday, the conversation.
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  Speaker 3: During the the CBA event a committee that we were
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  Speaker 3: we were running, we talk about throw that length and
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  Speaker 3: we talk about you know, all the f NI products
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  Speaker 3: and and and the charges and how to stay on
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  Speaker 3: top of it. There's a lot of activities going to
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  Speaker 3: that space. There's players there, the planes that are trying
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  Speaker 3: to solve it. So bringing was was was players in
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  Speaker 3: front of the committee. Having open conversation where you have
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  Speaker 3: pretty much representation of the entire landing community is extremely helpful.
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  Speaker 2: So that's that's that's that's that's what the community hope proc.
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  Speaker 1: Are you seeing innovation in any one specific space? Is
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  Speaker 1: fraud something that people are focused on now? Is it
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  Speaker 1: the experience of the dealership? Is it in the financing?
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  Speaker 1: Like where where are you seeing like the most innovation
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  Speaker 1: bubble up lately?
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  Speaker 3: So we it's I will say it's crossed the boat,
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  Speaker 3: so we But it happened at different stages.
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  Speaker 2: So a couple of years back.
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  Speaker 3: We've seen maybe transformation from a digital standpoint happening at
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  Speaker 3: the application level, so where clients were looking for like
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  Speaker 3: digital ways of kind of like going through the process.
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  Speaker 3: Then econtracting came forward on the indirectly on the direct side.
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  Speaker 3: Then then new tools came through. We're talking about fraud
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  Speaker 3: documentation capabilities where clients or dealership will be providing uploading
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  Speaker 3: the dogs directly to avoid the back and for so
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  Speaker 3: in other words, technology come in our space in different
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  Speaker 3: waves at different time.
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  Speaker 2: But so some of the.
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  Speaker 3: Inefficiencies that have been existing for years, and it's been
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  Speaker 3: it's been it's been kind of like actually very very
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  Speaker 3: high opening to for us to kind of like push
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  Speaker 3: push the agenda and see how with all the progress
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  Speaker 3: that we've made as an industry for the last couple
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  Speaker 3: of years, the last piece more more ready to kind
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  Speaker 3: of like the collateral you know, you were talking about financing.
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  Speaker 3: So it's it's very interesting kind of like we've seen
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  Speaker 3: with the entrance of electric vehicles, we've seen also kind
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  Speaker 3: of like the model being challenged. So now we're starting
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  Speaker 3: hearing from like a pure financing of the vehicle. You're
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  Speaker 3: talking about charging station financing, you're talking about.
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  Speaker 2: Just subscription model.
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  Speaker 3: Right now, you're talking about manufacturers coming and thinking through
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  Speaker 3: how do I separate the financing of the vehicle or
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  Speaker 3: the financing of the battery. A lot of things how
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  Speaker 3: happening in about space and it's in constant movement, so
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  Speaker 3: we're staying on top of fot those trends as well.
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  Speaker 1: Gotcha. How about from the end consumer standpoint, like when
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  Speaker 1: you're thinking about you know, customers the bank with associated
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  Speaker 1: what are the things they're thinking about. Do they appreciate
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  Speaker 1: like the level of complexity Fabian's talking about, or how
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  Speaker 1: do they think about, you know, buying a car today
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  Speaker 1: and coming to a bank for financing or that you
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  Speaker 1: know through the dealer.
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  Speaker 2: Are they are they aware.
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  Speaker 1: Of the changes at this time?
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  Speaker 4: Yeah? I think most customers aren't. I mean, they read
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  Speaker 4: what you can find out there in the press, but
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  Speaker 4: they really don't know the intricacies behind the details that
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  Speaker 4: we do. And they just they want to show up
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  Speaker 4: at a car dealership point of sale. They want to
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  Speaker 4: get there, pick out the car the options they want,
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  Speaker 4: and leave with it timely and then make their payments
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  Speaker 4: and move on. They really really don't know kind of
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  Speaker 4: what Fabing had just framed up right, which is kind
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  Speaker 4: of I call it the timeline of Originally somebody went
• 11:07
  Speaker 4: and applied for a loan, The lender looked at application data,
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  Speaker 4: and you pull the credit report. Then you had a
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  Speaker 4: credit report that had a fight Go score on it,
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  Speaker 4: and you built the custom score, so then you had
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  Speaker 4: a bankruptcy score that you could use. Then you have
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  Speaker 4: a fraud score that you could use. Then you have
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  Speaker 4: artificial intelligence that came in and started to look in
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  Speaker 4: all kinds of this other data that you could layer
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  Speaker 4: in on top of those just kind of core scores
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  Speaker 4: to get to how do you make it? You know,
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  Speaker 4: how do you make your decision? Then he mentioned collateral
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  Speaker 4: you get into Okay, we just financed the car. Then
• 11:39
  Speaker 4: it was the core four back end, right, tirro and wheel,
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  Speaker 4: prepaid maintenance gap, and a service contract. Now I can
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  Speaker 4: sit here, We'll run out of time and list all
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  Speaker 4: the things you can also add on top of that.
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  Speaker 4: So it just gets more complex. The more complex it gets,
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  Speaker 4: the more folks try to analyze it from a regulatory standpoint,
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  Speaker 4: all the moving parts. It's it's evolved, some of it,
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  Speaker 4: some of it good, some of it may be a
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  Speaker 4: little fuzzy.
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  Speaker 3: But there's a need in the industry when you think
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  Speaker 3: about this digitalization at different stage, we're realizing that in
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  Speaker 3: order for the industry to provide better client experience and
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  Speaker 3: to be more efficient general speaking, there's vire's a need
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  Speaker 3: to uniform the way we collect data, the way that
• 12:26
  Speaker 3: data is transmitted from one provider to another. And that's
• 12:30
  Speaker 3: that's most likely why anticipate kind of like maybe the
• 12:32
  Speaker 3: next move to be from like going from call it
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  Speaker 3: the paper to the electronic now trying to to to
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  Speaker 3: to find a common.
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  Speaker 2: Way to pass the data.
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  Speaker 3: So the data that comes from the dealership will will
• 12:45
  Speaker 3: will be making our way to us lenders in in
• 12:49
  Speaker 3: in a similar fashion, I won't have like, you know,
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  Speaker 3: ten different ways of like entering a field and creating
• 12:55
  Speaker 3: proper issues in the back end. And the same goes
• 12:58
  Speaker 3: on from like origination to service into collection.
• 13:01
  Speaker 1: And do you think that's a reaction to open banking
• 13:03
  Speaker 1: and that rules are more more on the innovation side
• 13:05
  Speaker 1: and just trying to.
• 13:06
  Speaker 2: More on the innovation side.
• 13:08
  Speaker 3: Just simple the cycle of technology going through just again
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  Speaker 3: it's the messy adoption trying to find efficiency in VAT.
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  Speaker 3: Once you get the client going through that, now it's
• 13:17
  Speaker 3: the entire industry trying to look at the ways to
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  Speaker 3: kind of like you know, better and more efficient ways
• 13:23
  Speaker 3: to kind of like from you.
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  Speaker 4: So I'll come in just so one of the fraud
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  Speaker 4: So the fraudsters, they're smart, they're not stupid, right, So
• 13:29
  Speaker 4: I'd like to say they're smarter than me, so I
• 13:31
  Speaker 4: got to be I'll think in the room with them.
• 13:33
  Speaker 4: But yeah, they take the auto automation right, and we
• 13:35
  Speaker 4: want to be eighty ninety percent automation right, be efficient,
• 13:38
  Speaker 4: et cetera. And sometimes that comes at a cost because
• 13:41
  Speaker 4: if you're automating things, you're auto approving things, you're not
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  Speaker 4: stopping things. So the fraudsters prey on that and use
• 13:48
  Speaker 4: that to their advantage. So you you've kind of always
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  Speaker 4: got away your auto decisioning is an example, but I
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  Speaker 4: want to dial that back a little bit to catch
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  Speaker 4: some of this fraud. But then again, if you're slowing
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  Speaker 4: down good deals to catch the one bad one. So
• 14:02
  Speaker 4: it's a definite struggle. We talked about that yesterday as well.
• 14:05
  Speaker 1: Is there is there a formula to that or how
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  Speaker 1: do people think about that? Generally, for every you know,
• 14:11
  Speaker 1: ten loans you approve, it's okay to have you know,
• 14:13
  Speaker 1: one bad one, Like.
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  Speaker 3: I don't think as a formula specifically. Obviously, depending on
• 14:18
  Speaker 3: your credit risk appetite and the size of your lending organization.
• 14:22
  Speaker 3: There's a lot of efficiencies that comes with, you know,
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  Speaker 3: the automation and the tools that we just mentioned here
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  Speaker 3: and that creates you know, literally you know, direct effect
• 14:33
  Speaker 3: on your bottom line. Now, like Max said, it's a
• 14:37
  Speaker 3: it's a ratio, it's a formula. But each financial institution
• 14:40
  Speaker 3: will have to solve for themselves. You know, due to
• 14:44
  Speaker 3: your size, you might be okay letting one or two
• 14:46
  Speaker 3: bad loans coming through. If you're a little smaller at
• 14:48
  Speaker 3: one or two bad loans, you want to catch earlier.
• 14:51
  Speaker 2: And so so again, it's just like it's your risk.
• 14:52
  Speaker 2: Appetites is the way you generate. It will be very
• 14:55
  Speaker 2: different from one institution to another.
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  Speaker 4: Yeah, and I won't Yeah, I'll give you one example,
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  Speaker 4: so perfect example. Economies of scale in size. We talked
• 15:02
  Speaker 4: about this yesterday. So if you apply for a loan,
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  Speaker 4: we auto approve you, so everybody auto approves you. If
• 15:07
  Speaker 4: you go across the street you're shopping, some places will
• 15:11
  Speaker 4: not auto prove you. You'll dupe. It's a duplicate app
• 15:13
  Speaker 4: We look at, okay, is this customer trying to bust
• 15:15
  Speaker 4: out why they're trying to finance two cars? Well he's
• 15:17
  Speaker 4: just looking at this camera here and a camera cos yeah,
• 15:20
  Speaker 4: we'll buy him. We manually approve them. A lot of
• 15:22
  Speaker 4: folks will just automatically reapprove you again and again and again.
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  Speaker 4: They won't stop that process. So what could happen? You
• 15:29
  Speaker 4: accept the risk you could finance ten cars eight cars
• 15:33
  Speaker 4: bust out, and that happens. You can finance eight cars
• 15:37
  Speaker 4: for you and you're going to put them all on
• 15:38
  Speaker 4: Turo and lease them out. So the economy of scale
• 15:41
  Speaker 4: that we would lose by not doing that is we
• 15:43
  Speaker 4: have to manually stop and say, okay, here's eighty deals
• 15:47
  Speaker 4: where the customer was trading in the car. They're legit,
• 15:49
  Speaker 4: but look at the ones we caught through a little fuzzy.
• 15:52
  Speaker 4: The other side is a lender may say it's acceptable risk.
• 15:55
  Speaker 4: We're not going to stop that automation for the couple
• 15:59
  Speaker 4: that we might get burned on. So it's a it's
• 16:01
  Speaker 4: a trade off as long as you understand that, yeah,
• 16:03
  Speaker 4: I think that's that's probably the most important thing, and
• 16:05
  Speaker 4: then you just solve for it and say do it
• 16:08
  Speaker 4: this way or do it the other way?
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  Speaker 2: Is it?
• 16:10
  Speaker 1: Is it more of that type of fraud or what
• 16:12
  Speaker 1: are people more worried about? You know, especially with some
• 16:14
  Speaker 1: of the AI tools, you think about deep fake and
• 16:16
  Speaker 1: like how do you automate or even if you wanted
• 16:18
  Speaker 1: to phone call somebody or you know, try to even
• 16:21
  Speaker 1: manually intervene in a limited way. Are fraudsters more advanced
• 16:25
  Speaker 1: in some of those or is it just a lot
• 16:27
  Speaker 1: of you know, more first first party fraud.
• 16:29
  Speaker 3: First party fraud, I think is what we're seeing the
• 16:32
  Speaker 3: most again just for for your audience. Those those are
• 16:39
  Speaker 3: you know, effect social security numbers behind a real person
• 16:43
  Speaker 3: and and and that that individual is used to kind
• 16:47
  Speaker 3: of like you know, go through application of of loans,
• 16:52
  Speaker 3: and that's what we're seeing. But to your comment, I
• 16:54
  Speaker 3: think this is the most important. Is that is getting
• 16:56
  Speaker 3: more and more sophisticated, requiring every one of you know,
• 17:00
  Speaker 3: the members at CBA to pay and keep.
• 17:04
  Speaker 2: On investing invet space.
• 17:05
  Speaker 3: So this is where we rely on tools, best practices,
• 17:09
  Speaker 3: share off information as well, try to combat troat. It's
• 17:13
  Speaker 3: becoming faster to your point with the if you're totally
• 17:15
  Speaker 3: aering AI on top of this, yes, it can be
• 17:18
  Speaker 3: created very fast.
• 17:19
  Speaker 1: Yeah. And is it only something that can really be
• 17:21
  Speaker 1: prevented by every lender, every dealer, like at each point
• 17:24
  Speaker 1: of entry or is there any centralized way to stop
• 17:27
  Speaker 1: some of this that everyone can benefit from.
• 17:31
  Speaker 4: So you can do a consortium and there's there's third parties.
• 17:34
  Speaker 4: I won't name them right, there's several that they do
• 17:36
  Speaker 4: a consortium that as soon as I catch fraud, I
• 17:39
  Speaker 4: reported the consortium so that if somebody gets an app
• 17:42
  Speaker 4: the next second, they'll know, so you can go to
• 17:44
  Speaker 4: the consortium route third party providers. But what unfortunately, or
• 17:49
  Speaker 4: I guess fortunately for us, Unfortunately for dealers dealers, by
• 17:53
  Speaker 4: virtue of our dealer agreement, if we catch fraud on
• 17:56
  Speaker 4: the back end, it's unfortunate. But they kind of a check.
• 18:00
  Speaker 4: They have tricks and devices through their insurance company. But
• 18:02
  Speaker 4: really they're really the ones that that identity fraud, the
• 18:05
  Speaker 4: fake ID, the fake driver's license, the meal somebody hired
• 18:10
  Speaker 4: somebody to come in. I'm right here in Florida has
• 18:13
  Speaker 4: I think it's the biggest one so far. Over three
• 18:15
  Speaker 4: hundred cars through that fraud ring. And of course they
• 18:19
  Speaker 4: were all delivered through dealers. All the dealers are technically
• 18:22
  Speaker 4: on the hook, but you know, so they're partners of ours.
• 18:24
  Speaker 4: We try to catch stuff to at our end, but
• 18:28
  Speaker 4: ultimately they're as far as red flag rules, you're familiar
• 18:30
  Speaker 4: with those, you know, they're bounded by those, just like
• 18:32
  Speaker 4: a bank is.
• 18:34
  Speaker 1: Well, maybe enough on the scary topics like what are
• 18:36
  Speaker 1: the things you guys are excited about in this space,
• 18:38
  Speaker 1: like what are the things you see innovation again that
• 18:42
  Speaker 1: maybe benefits consumers, dealers, lenders that are coming up.
• 18:47
  Speaker 3: Yeah, I mean one of the best, the biggest challenges
• 18:49
  Speaker 3: that we had, I will stop you about just to
• 18:52
  Speaker 3: go on the bright side of innovation. But a BTV
• 18:54
  Speaker 3: has been like a key concern for the last couple
• 18:56
  Speaker 3: of years. Obviously, we've seen you know, price plus COVID,
• 18:59
  Speaker 3: we've seen parts of vehicles on the use on you
• 19:02
  Speaker 3: going high created some challenges right environment being where it was,
• 19:06
  Speaker 3: So I think going forward you kind of look look
• 19:09
  Speaker 3: at that picture and hope for an opportunity for those
• 19:12
  Speaker 3: clients to refinance. It's been also very lease heavy again
• 19:17
  Speaker 3: just to address the affordability component. So I think you're
• 19:20
  Speaker 3: going to see that mix between lee's and purchase kind
• 19:23
  Speaker 3: of like rebalance itself.
• 19:24
  Speaker 2: For lenders.
• 19:25
  Speaker 3: It provide opportunities as well to kind of like you know,
• 19:28
  Speaker 3: keep those clients within within their portfolios, so you know,
• 19:33
  Speaker 3: you know, you can refinance to lise, buy out, and
• 19:35
  Speaker 3: and again provide provide the solution for for your clients.
• 19:39
  Speaker 2: So I think we have.
• 19:41
  Speaker 3: We have a lot of bridays in front of us.
• 19:44
  Speaker 3: I will just what I get excited about is just
• 19:47
  Speaker 3: like really kind of like when you think about the
• 19:50
  Speaker 3: auto experience that Mike was mentioning all the way off
• 19:53
  Speaker 3: from other as lenders. Either you you you only in
• 19:59
  Speaker 3: the end direct side and you work for your dealer network,
• 20:01
  Speaker 3: or you have also what we call client direct where
• 20:05
  Speaker 3: you provide financing solution for your clients. We were has
• 20:09
  Speaker 3: a lot of opportunities in the space to kind of
• 20:11
  Speaker 3: like revisit that client experience, find a pinpoints, address them
• 20:15
  Speaker 3: through through automation, through new tools that will make that
• 20:20
  Speaker 3: that experience better altogether. And we want to continue that
• 20:24
  Speaker 3: partnership with our dealers at the same time as a
• 20:27
  Speaker 3: find find financial institutions. We are here to provide like
• 20:31
  Speaker 3: the best client experience whatsoever. So we're here to provide
• 20:35
  Speaker 3: financing solutions and and and create that seamless integration with
• 20:39
  Speaker 3: the dealers.
• 20:40
  Speaker 4: Mike, Yeah, I mean, I mean we're we've I think
• 20:43
  Speaker 4: the auto industry everyone's poised well, throw out recession threat,
• 20:48
  Speaker 4: throw out a terriff. I mean we can't control that stuff.
• 20:51
  Speaker 4: I think the industry, the auto industry the finance industry.
• 20:55
  Speaker 4: We've put ourselves in a great position controlling what we
• 20:58
  Speaker 4: can right CFPB, we responded to them. We're in a
• 21:03
  Speaker 4: good position. We've worked with them, we partnered with them,
• 21:06
  Speaker 4: the OCC we partner with them, FTC, you name it right,
• 21:08
  Speaker 4: We're ready and we can't control other things around us.
• 21:13
  Speaker 4: But I think that there's good news out there. I mean,
• 21:16
  Speaker 4: I'll give you one example of Watch the data you
• 21:18
  Speaker 4: get on you know, write sixty day delinquency. Read the
• 21:23
  Speaker 4: news it's all time high. Well, it's an all time high,
• 21:26
  Speaker 4: only only in six twenty or less, only in subprime.
• 21:30
  Speaker 4: Prime is actually performing better. So first you read it
• 21:35
  Speaker 4: the sky's falling, No peel it back the space that
• 21:39
  Speaker 4: a lot of folks play in, and the answer depends
• 21:42
  Speaker 4: to them what space you play. So if you're playing
• 21:43
  Speaker 4: in that subprime space, you're not feeling good. Yeah right,
• 21:47
  Speaker 4: But if you if you play outside of it, you're
• 21:50
  Speaker 4: in a good position. Portfolio is performing well. Unfortunately, consumer
• 21:56
  Speaker 4: confidence is slipping a little bit. Unemployment's good, but if
• 22:00
  Speaker 4: competence isn't there. But once again, these are things we
• 22:02
  Speaker 4: can't control. We can only control. An app just came
• 22:06
  Speaker 4: through the door from from a dealer partner of ours, right,
• 22:08
  Speaker 4: a good dealer, and we try to do the best
• 22:11
  Speaker 4: we can with that app yeah and go forward.
• 22:14
  Speaker 1: Yeah, totally. And it seems in at least American culture,
• 22:17
  Speaker 1: like the car is such a part of the you know,
• 22:19
  Speaker 1: the experience of the car. Everyone remembers their first car,
• 22:22
  Speaker 1: and uh, you know, they just keep getting more expensive,
• 22:24
  Speaker 1: as you mentioned with evs and the components. So I
• 22:27
  Speaker 1: think financing, as far as I can see, is going
• 22:30
  Speaker 1: to be a component of that. But do you see
• 22:32
  Speaker 1: any of that changing in terms of how people think
• 22:34
  Speaker 1: of vehicles or use them, or would that change any
• 22:38
  Speaker 1: different creativity in financing other than again.
• 22:41
  Speaker 2: I think I think I mentioned it earlier.
• 22:43
  Speaker 3: Just the EV's brought brought a new new way of
• 22:46
  Speaker 3: kind of flack approaching the v's nice that will be
• 22:49
  Speaker 3: different than the combustion engine, but we've been we've seen
• 22:51
  Speaker 3: for many years. So the the the increase in demand
• 22:57
  Speaker 3: in subscription model which we've seen you know, in other
• 22:59
  Speaker 3: part of like what consumers are using, will most likely
• 23:03
  Speaker 3: make its way to to the auto industry at one point.
• 23:07
  Speaker 2: And so.
• 23:10
  Speaker 3: Flex flex flexible leasing nub of products will also kind
• 23:14
  Speaker 3: of like be increasing. I think I think we'll see
• 23:20
  Speaker 3: and you think about just like autonomous vehicles, type of
• 23:23
  Speaker 3: new type of technology also that most likely will do like.
• 23:29
  Speaker 2: Sharing of totally changed the landscape.
• 23:34
  Speaker 3: I will say that we're still hears away from from
• 23:36
  Speaker 3: from that type of trends. But but again, the one
• 23:40
  Speaker 3: of the positive things that happened with the TV players
• 23:43
  Speaker 3: the manufacturers that came is that they not only came
• 23:46
  Speaker 3: came up with new vehicles and we had to address
• 23:49
  Speaker 3: some of those challenges. But when you go beyond the
• 23:53
  Speaker 3: charging station and and now it's just bringings like a
• 23:57
  Speaker 3: new way of like thinking about the financing I mentioned earlier,
• 24:00
  Speaker 3: like how.
• 24:00
  Speaker 2: Do you separate the battery to the vehicle in itself?
• 24:05
  Speaker 2: And do you like.
• 24:06
  Speaker 3: We've seen in other part of in other countries where
• 24:11
  Speaker 3: literally clients will go to you know, service center, go
• 24:15
  Speaker 3: and swept the battery on the vehicles and just like
• 24:18
  Speaker 3: roll out like ten minutes later.
• 24:20
  Speaker 2: It's it's it's will come. It's a matter of whene.
• 24:23
  Speaker 1: Yeah, well, I think we're probably about out of time.
• 24:29
  Speaker 1: I could ask you to make predictions on tariffs or regulations,
• 24:32
  Speaker 1: but maybe we'll say that for another time. Maybe I
• 24:35
  Speaker 1: don't know what is there a dream car or a favorite
• 24:38
  Speaker 1: car you've had, like being in a space for a while,
• 24:40
  Speaker 1: like if you can have any car, is there one
• 24:42
  Speaker 1: on your list or maybe a favorite car you've owned
• 24:44
  Speaker 1: in the past.
• 24:48
  Speaker 3: I would have to go, I will have to go, Evy,
• 24:51
  Speaker 3: And I had the opportunity to drive a couple of
• 24:55
  Speaker 3: times the Lucy the Hair which was you know, was
• 24:58
  Speaker 3: the car the year back in twenty twenty two. Uh yeah, true, true, truly,
• 25:02
  Speaker 3: truly a wonderful car. And so that's that's one of
• 25:04
  Speaker 3: the busy equivalent I rove for the last couple of years.
• 25:07
  Speaker 4: So my best one was a seventy nine Corvette and
• 25:10
  Speaker 4: it was stolen in Westboro, Massachusetts. It paid for my
• 25:13
  Speaker 4: wedding and down payment on my house. So I I
• 25:16
  Speaker 4: cried when I lost the car, but it was it
• 25:18
  Speaker 4: was it was a good return.
• 25:21
  Speaker 1: That seems like a good story behind that I'm at
• 25:24
  Speaker 1: it's a true story too cool.
• 25:27
  Speaker 2: Well, thank you both, Thank you so much time. Thank
• 25:29
  Speaker 2: you for having you. Thank you